Vocabulaire stock market Flashcards
Appreciate
consist of evaluating or mesuring the value of a certain object or service
Arbitrage
financial strategy that consist of taking advantage of the price difference between different markets for the same financial assets in order to obtain an economic benefit
Asset-backed security
Bonds or promissory notes that are backed by financial assets. They are usually made up of accounts receivables
Asset
Any resource owned by an individual or entity that has economic value and can be converted into cash or used to generate income.
Bank secrecy act
law to combat money laundering and other financial crimes
Banker
Person whose job consist on helping their clients to take the best decisions for their company
Bear market
Market that has a history of sustained declines over time and towards which investor don’t feel very optimistic regarding an increase
Bear
An investor who believes that the market or a specific asset will decline in value, leading to a selling strategy.
Bond
Title that represents the right to receive a flow of periodic payments in the future exchange for delivering an amount of money
Broker
the person responsible for executing the marketing and sale’s activities of products or services
Building societies
financial institution that offers banking and other financial services
Bull
An investor who believes that the market or a specific asset will rise in value, leading to a buying strategy.
Bull market
A specific type of buoyant market characterized by a sustained period of rising prices. It reflects strong investor confidence and positive economic outlooks.
Buoyant market
A financial market where prices are rising or stable, driven by investor confidence and optimism, leading to increased trading activity. It can refer to both rising and stable conditions.
Call (option)
at the end of the lease period, the lessee usually has the option to purchase the asset at a nominal price
Capital market
is a financial market in which long-term debts are bought and sold
Capitalization rate
mesure of profitability used to evaluate the possible rate of return on a income-producing investment property
Clearing
payments or benefits that an employee receives in exchange for their work or services
Closing price
the last price at which a stock traded during a regular trading session
Collateralized debt obligation
is a type of financial product structured and backed by ABS financial assets
Commercial bank
institutions that have been authorized by the Federal Government to raise financial resources and grant credits
Compound interest
Interest calculated on both the initial principal and the accumulated interest from previous periods.
Cost of debt ratio
is a math. quotient that represent the total percentage of debt that a business has in relation to its own resources
Cost of debt
monetary cost that a company makes through loans
Cost of equity
cost that a company has to obtain financing through its own resources
Credit
An agreement in which a borrower receives something of value now and agrees to repay the lender at a later date, often with interest.
Credit default swap (CDS)
is a financial derivative that allows to cover the risk of non-payment of a financial asset
Credit rating agency (CRA)
private entities whose main function is to provide an assesment of the credit risk of a company or financial product through a series of rating
Current assets
are instruments that allow to obtan profitability in a period of less than 12 months
Current yield
is the annual income generated by an investment, expressed as a percentage of its current market value
Deflation
Is a general and continued fall in prices in economy
Depreciate
To reduce in value over time, typically referring to assets due to wear, aging, or market conditions.
Discount rate
interest rate that is used to calculate the value of a series of income that will be received later
Diversification
consist on dividing the available resources to asign each part to differents assets
Dividends
they are the part of profits that a company has generated, They are distributed among its partners or shareholders
Dividend per share (DPS)
is an essential financial indicator that mesures the amount of money a company pays its shareholders for each share in circulation.
Dull market
is characterized by a prolonged period of low volume and small price changes
Earnings per share (EPS)
is a financial index that is used to mesure the profitability of a company